Everything We Do We Do For You!
SCCU HEALTH SAVINGS ACCOUNT
Who
is eligible to open an HSA?
·
An
individual or a family, not a trust or business.
·
Must be
covered by a high deductible health plan (HDHP).
·
Some
one who is self-employed and covered by an HDHP.
Who
is not eligible to open an HSA?
·
Members
enrolled in Medicare.
·
Members
receiving veteran’s affairs medical benefits.
·
Members
who can be claimed as a dependent on another person’s tax return.
What
is an HDHP?
·
Is a
health insurance plan that has a high deductible/out of pocket expense that must be met
before coverage starts.
·
To
qualify as a HDHP the minimum deductible must be at least $1,050 for an individual and
$2,100 for a family coverage.
·
There
is also a maximum deductible/out of pocket expense cap of $5,250 for an individual and
$10,500 for a family.
What
are the possible benefits of a Health Savings Account?
·
The
earnings in the HSA are tax deferred, and may be used tax free.
·
The
member decides which medical expenses to pay from the HSA.
·
Funds
can be saved and used during retirement.
·
There
is no use-it or lose-it provision as in the flexible spending plan.
What
distributions are exceptions to the 10% penalty tax?
·
Death
·
Disability
·
Attainment
of age 65, but may be subject to federal income taxes if not used for medical expenses.
What
are the Death Beneficiary rules?
·
Spouse:
HSA becomes the HSA of the spouse. Distributions
used to pay for qualified expenses of the deceased or surviving spouse are tax-free.
·
Non-Spouse: HSA ceases to be an HSA on the date of death. Date of death fair-market value included in
beneficiary’s income, reduced by distributions used to pay for qualified expenses of
the decedent within one year after death. Income
tax but no penalty tax.
·
The HSA
is not tied to an employer.
·
The HSA
increases in value with tax deferred dividends.
The
HSA funds can be used for qualified medical expenses that are traditionally not covered by
insurance
What
are the regular contribution limits?
·
Regular
contribution limits are affected by HDHP deductible amount and age (catch-up contributions
apply).
·
Self-Only
Coverage lesser of 100 % of the deductible or $2,700.
·
Family
Coverage lesser of 100% of the deductible or $5,450.
What are the Catch-Up Contributions?
·
An
additional contribution may be made by individuals at least age 55 but younger than age
65. For 2006 the catch up is $700, 2007=$800, 2008=$900, 2009 and there after the catch up is
$1,000.
·
Applies
to eligible individuals with self-only coverage or family coverage.
What
are the Contribution Limit Reductions?
·
Regular
contribution limit is reduced by any amount contributed to an Archer MSA and months not
covered under an HDHP
·
Contribution
limits are not affected by income (no income needed)
What
Rollover Contributions are allowed?
·
HSA to
HSA
·
Archer
MSA to HSA
Rollovers
from or to any other source are not permitted
What
is an Archer MSA?:
·
Medical
Savings Accounts are tax-deductible savings accounts to save for medical expenses. Archer
MSAs, and their replacement Health Savings Accounts, function like individual retirement
accounts. You make contributions now. Your contributions earn interest, which may be
tax-deferred or tax-free. Withdrawals for medical expenses are tax-free withdrawals.
Withdrawals for other purposes become taxable, and penalties may apply.
What
are some facts about HSA Distributions?
·
Distributions
can be taken any time
·
The HSA
owner is responsible for determining if expenses qualify.
·
Tax-free
if used to pay for qualified medical expenses.
·
Tax and
10% penalty apply to non-qualified distributions.
What is a Qualified Medical Expense?
·
An
amount paid by an HSA owner, spouse, and dependents for certain types of medical care not
covered by insurance or another health plan.
·
Examples
are: The cost of diagnosis, cure, treatment or prevention of disease. This includes
prescription and non-prescription drugs. Transport essential to medical care above.
·
Qualified
long term care services
·
Premiums
for qualified long term care insurance.
·
Dental,
vision, and other services that may not be covered under the HDHP.
·
Must be
incurred after an HSA is established; earlier expenses are non-qualified.
-
HEALTH SAVINGS ACCOUNT -
Get more info at:
Moffat
Office:
Terrapin
Station
604
Reynolds St. P.O.
Box
337
Moffat, Co 81143
Telephone#
(719)256-4899
/
Fax#
256-4458
Center
Branch:
395
S. Worth St. P.O. Box 956
Center, Co 81125
Telephone#
(719)
754-2632 /
Fax# 754-2631
Crestone
Branch:
110 E.
Silver Ave P.O. Box 129
Crestone, CO 81131
Telephone#
(719) 256-6000
/
Fax#
(719) 256-6003
Email:
Moffat@sccu4u.net
Hours:
10:00
am – 5:00 pm
Monday-Friday
9:00
am – 12:00 pm
Saturday
|
